UNITED STATES OF AMERICA
BEFORE THE
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 39123 / September 24, 1997
ADMINISTRATIVE PROCEEDING
File No. 3-9431
__________________________
:
In the Matter of : ORDER INSTITUTING PUBLIC
: ADMINISTRATIVE PROCEEDINGS,
GERALD P. HIRSCH, : MAKING FINDINGS AND IMPOSING
: REMEDIAL SANCTIONS
Respondent. :
_________________________:
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate and in the public interest that public administrative
proceedings be, and hereby are, instituted pursuant to Sections 15(b) and
19(h) of the Securities Exchange Act of 1934 ("Exchange Act"), against
Gerald P. Hirsch ("Hirsch").
II.
In anticipation of the institution of these public administrative
proceedings, Hirsch has submitted an offer of settlement ("Offer of
Settlement") which the Commission has determined to accept. Solely for the
purposes of these proceedings, and any other proceeding brought by or on
behalf of the Commission, or in which the Commission is a party, and
without admitting or denying the findings contained in this Order
Instituting Public Administrative Proceedings, Making Findings And Imposing
Remedial Sanctions ("Order"), except as to those facts set forth in
Sections IV. B. and C., below, which Hirsch admits, Hirsch consents to the
entry of the Order, the findings and the remedial sanctions set forth
below.
III.
Accordingly, IT IS ORDERED that a public administrative proceeding
pursuant to Sections 15(b) and 19(h) of the Securities Exchange Act of 1934
("Exchange Act") be, and hereby is, instituted against Hirsch.
IV.
On the basis of this Order and Hirsch's Offer of Settlement, the
Commission finds that:
A. From 1982 to December 1996, Hirsch was the President and Chief
Executive Officer of Churchill Securities, Inc. ("Churchill");
B. Churchill was, at all relevant times, a broker-dealer registered
with the Commission pursuant to Section 15(b) of the Exchange
Act;
C. On May 24, 1996, the Commission issued the Commission Order,
which, inter alia, suspended Hirsch from association with any
broker, dealer, investment adviser, investment company or
municipal securities dealer for a period of 12 months, effective
on June 3, 1996;
D. From in or about June 3, 1996, to December 4, 1996, Hirsch
willfully associated with Churchill in violation of the
Commission Order. In furtherance of this conduct:
1. From June 3, 1996, to approximately December 4, 1996, Hirsch
mailed newsletters to potential investors in which he
described himself as being associated with Churchill, and
recommended the purchase of various securities;
2. On or about July 29, 1996, Hirsch signed and filed a form
with the National Association of Securities Dealers
("NASD"), wherein Hirsch represented that he was a "member,
partner, officer or principal" of Churchill;
3. In approximately August 1996, Hirsch placed orders for
securities transactions for several Churchill customers
through Churchill's clearing broker, and, from June 1996
through October 1996, Hirsch issued checks to certain
individuals and to the NASD from a bank account bearing
Churchill's name, and listing Hirsch as the signatory; and
4. On November 23 and 24, 1996, Hirsch, who owned the building
in which Churchill was located, seized Churchill's premises,
including all of the documents located therein, prevented
the new owner of Churchill from entering the premises, and,
from November 25, 1996, to December 4, 1996, operated the
broker-dealer;
The findings herein are made pursuant to Hirsch's Offer
of Settlement and are not binding on any other person
or entity named as a respondent in any other
proceeding.
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V.
In view of the foregoing, the Commission finds that it is in the
public interest to impose the sanction specified in the Offer of
Settlement.
Accordingly, IT IS ORDERED that Hirsch be barred from association with
any broker, dealer, investment company, investment adviser or municipal
securities dealer, effective immediately.
By the Commission.
Jonathan G. Katz
Secretary